I find it difficult to believe that the managers were not aware of the reoccurring fraudulent activities. A bank’s work environment is highly commensurate with that of a sales environment. Banks often have sales objectives aimed at credit cards, lines of credits, mortgages, and more. Therefore, with my experience working in the sales industry, I imagine that there are unattainable sales goals that are set and managers create pressure onto the employees to hit unrealistic sales goals. The agency problem plays a significant role since managers know that if their branch hit their sales goals it looks good to upper management, thus creating job security with the company.
Scammers are always an issue and there are a lot of dishonest people out there trying to take advantage of those that are unaware. However, for professional salespeople, I think ethics do not get in the way of success in sales. I think it is the opposite, ethical behavior builds trust and is a requirement to be successful in the long term for salespeople. Their reputation and livelihoods depend on the relationships they build with their customers and their reliability to their organization.
Not periodically changing passwords, and rotating task between particular employees was another issue. Proper auditing of documents was another and last issue involved with this fraud scheme. b) For those components of the business process that were performed incorrectly, fully explain what should be done to correct each process, a. Trust is a key component in business world, particularly because supervisor and management do not hire, nor keep in employment those that they do not trust. Unfortunately, because of this, the violation of trust is an occurrence that many companies are susceptible to. By keeping up with employees and understanding their personal life to some extent, without breaching privacy, management can adjust their views of an employee, giving the proper access involve with their job tasks.
The second section throws light on the personal bankruptcy theory. The third and last section discusses some empirical research on personal bankruptcy. 2. PERSONAL BANKRUPTCY LAW In the United states, there are two major types of bankruptcy procedures - Chapter 7 for the case of “liquidation” and Chapter 13 for the case of “reorganization”.
Getting out of debt and debt consolidation does. Make a first step and find out how much debt you have and how much interest you pay on it. Turn for professional help, if you want to find out about the best debt consolidation and debt elimination strategy. But, before you hire a professional in this area, make sure to check up their reputation and
In fact, making money at any cost is all what matters, while doing what is right and abiding by the law is not. That said, as a corporate finance student and a business administration major, it is as interesting as important for me to learn about what is considered as unethical in business, in addition to who is enforcing the federal securities laws, proposing securities rules, and regulating the securities industry. B) Unethical Behaviors in Business: Definition To understand what an unethical business behavior means, we must understand what is meant by ethics. Ethics can be
Self-interest threats are mostly of financial nature where the auditor has a financial interest in the company that they are auditing and fear that providing bad opinion on the statements might hinder them from attaining this interest. Among the safeguards to these threats are; professional requirements, the legislation, and regulatory bodies and other third parties (Fearnley, Beattie & Brandt,
For the irregularities of the industry, ASIC is negligence of duty, did not stop this bad behaviour in time, industry supervisor did no financial planners responsibilities for constraints which made the financial market and the customer have suffered huge losses. In contrast, Australian Securities and Investment Commission, as a industry supervisor, once it's regulation when there is no practical significance, its power will be built on stilts, soon loses control of the industry, causing irreversible decline. If we want to perfect the supervision mechanism of ASIC, we first need to understand what obligations financial planners should fulfil. Synthesize above industry vocational demand, as a financial planner, fulfil the fiduciary obligation to perform, to keep the customer loyalty. Only in this way can harmony
When insider trading takes place, investors are likely to lose faith in our economy and pull their investments. Loss of foreign investments would negatively affect the entire country, as our economy would suffer significantly. When professionals do not maneuver in the financial markets in a law-abiding way, foreign investors are likely to become uneasy. Corruption will cause foreign investors to lose faith and withdraw their investments from our country, thus preventing much-needed economic growth in South Africa.
When the company shared financial information in a fileshare it’s confidential and charges could be filed. The company would most likely in this case file theft against the employee. This crime could leave an employee in imprisonment if the state or federal charges occurred. There’s also the possibility that the company you previously worked for would decide to file lawsuit damages against you and you would have to pay money to the employer. This means you have caused damages to the company and this is possible if the company is known worldwide.
Clients must keep records and books of accounts including cash book, sales ledger, purchases ledger and general ledger. Supporting documents such as invoices, bank statements, pay-in slips, cheque butts, and receipts for payments, payroll records and copies of receipts issued should be retained. A valuation of the stock in trade should be made at the end of the accounting period and the appropriate records maintained. Company should record sufficient to explain each transaction and to enable a true and fair profit & loss account and balance sheet to be prepared. At the end of the accounting period, a physical stock-take should be made to ascertain the quantity and the cost of the stock in hand or the cost of work in progress statements and
Ms. Yates has argued that punishing individuals is one of the most effective ways of actually causing a corporation to rethink their actions, but this is also difficult to do. When a corporation is investigated, the Justice Department requires them to hand over any documents related to the case and the individuals who were involved in specific crimes. Obviously, the individuals involved are less inclined for this to happen and are often in management roles at the company. In the average case, the corporation and the individuals at fault admit to wrongdoing—as Credit Suisse and five other global banks did in May of 2014--, but they do not disclose the names of the individual people responsible. At this point in the game, the Justice Department faces a dilemma.
1. Identify the specific circumstances under which auditors are allowed to provide confidential client information to third parties. According to ET Section 391.004, an auditor would be violating Rule 301.01 if the information is considered to be confidential client information, unless the auditor has the clients' specific consent, preferably in writing, for the disclosure or use of such information. “A member in public practice shall not disclose any confidential client information without the specific consent of the client” (AICPA § 301.01).